Correlation Between Fitipower Integrated and AAEON Technology
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and AAEON Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fitipower Integrated and AAEON Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitipower Integrated Technology and AAEON Technology, you can compare the effects of market volatilities on Fitipower Integrated and AAEON Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fitipower Integrated with a short position of AAEON Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and AAEON Technology.
Diversification Opportunities for Fitipower Integrated and AAEON Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fitipower and AAEON is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and AAEON Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAEON Technology and Fitipower Integrated is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fitipower Integrated Technology are associated (or correlated) with AAEON Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAEON Technology has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and AAEON Technology go up and down completely randomly.
Pair Corralation between Fitipower Integrated and AAEON Technology
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to under-perform the AAEON Technology. But the stock apears to be less risky and, when comparing its historical volatility, Fitipower Integrated Technology is 1.2 times less risky than AAEON Technology. The stock trades about -0.18 of its potential returns per unit of risk. The AAEON Technology is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 12,900 in AAEON Technology on August 30, 2024 and sell it today you would lose (750.00) from holding AAEON Technology or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. AAEON Technology
Performance |
| Timeline |
| Fitipower Integrated |
| AAEON Technology |
Fitipower Integrated and AAEON Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitipower Integrated and AAEON Technology
The main advantage of trading using opposite Fitipower Integrated and AAEON Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, AAEON Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AAEON Technology will offset losses from the drop in AAEON Technology's long position.| Fitipower Integrated vs. Taiwan Semiconductor Manufacturing | Fitipower Integrated vs. MediaTek | Fitipower Integrated vs. United Microelectronics | Fitipower Integrated vs. Novatek Microelectronics Corp |
| AAEON Technology vs. Qisda Corp | AAEON Technology vs. Quanta Computer | AAEON Technology vs. Coretronic | AAEON Technology vs. Wistron Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |